Short Term

Short-term investments are financial instruments or assets that are intended to be held for a relatively brief period, typically less than one year. These types of investments are typically characterized by their low-risk nature, high liquidity, and quick turnover.

Examples of short-term investments include:

Money market funds: These are mutual funds that invest in short-term debt securities such as Treasury bills, commercial paper, and certificates of deposit.

Certificates of deposit (CDs): These are savings accounts that offer a fixed interest rate for a specific period of time, typically ranging from three months to five years.

Treasury bills (T-bills): These are short-term debt securities issued by the U.S. government that mature in less than one year.

Commercial paper: This is a type of unsecured, short-term debt issued by corporations to fund short-term liabilities.

Short-term investments are ideal for investors who have a low risk tolerance and require easy access to their funds. These investments offer a relatively stable return on investment, but generally provide lower returns compared to long-term investments.

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